layer modes don't work in layer groups

For the projects I'm working on, I use the same template beneath the different layer groups of each different project. When I move a "color" layer into the group, however, it doesn't show up like it's supposed to. It behaves as if the 'color' layer is a blank layer, and has no effect. Is there any way to get this to work or?...

ALSO: I can't open images by URL. Can anyone tell me, step-by-step, how to fix this?

So what you're saying is, if the layer group is set to color, then all layers in it will act as color mode, while normal acts as normal?I thought the group would behave like folders of a sort, not parenthesis. Thanks anyways.